Europe’s Big Four Agree to Sign Off €130 Billion Plan

Italy, France, Spain and Germany agreed to push European leaders at a key summit next week to sign off on a €130 billion euro plan aimed at increasing growth in Europe’s beleaguered economies.

The agreement, taken at a summit in Rome, is a victory for the leaders of Italy, France and Spain, which have for months been trying to convince Germany, Europe’s strongest economy, that a concerted plan to boost growth in the region is needed to offset the wave of austerity measures countries are taking to fight the debt crisis.

“Markets need to know that the euro is here to stay, and we all mean it,” Prime Minister Mario Monti said after he met with German Chancellor Angela Mekel, French President Francois Hollande and Spanish Prime Minister Mariano Rajoy.

“The EU has taken some steps,” in tackling the crisis, Mr. Monti added at the joint news conference, “but it hasn’t been enough…including regarding growth.”

Speaking to hundreds of journalists at a villa overlooking Rome, the four leaders gave few details, however, on whether they had discussed more prickly issues on the agenda of European leaders – including whether the euro-zone’s existing bailout funds should be activated to buy bonds of the ailing economies of Italy and Spain.

Addressing the issue broadly, Mr. Rajoy only said: “There has been agreement amongst all of us that all necessary mechanisms to achieve financial stability for the euro zone will be put into place.”